Junior Achievement s 2010 Teens and Entrepreneurship Survey Empowering Entrepreneurship Success

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1 Junior Achievement s 2010 Teens and Entrepreneurship Survey Empowering Entrepreneurship Success

2 Introduction Finding an Antidote to Fear How do American teens view the current world of business and free enterprise? After watching their parents and other adults navigate through the financial storm caused by the recent recession, do teens see potential for themselves as future entrepreneurial forces in the 21st-century global marketplace? Junior Achievement sought to assess U.S. high school students economic mindset through its 2010 Teens and Entrepreneurship Survey, sponsored by Sam s Club. The annual poll gauges teens attitudes about business ownership and entrepreneurship education. Survey results indicate that the prolonged recovery of the world economy has the majority of teens feeling hesitant about starting their own businesses. Seventy-four percent of those polled identified risk (39 percent) and the possibility of failure (35 percent) as the biggest deterrents to launching their own business ventures. However, the survey found that 51 percent of teen respondents the same percentage reflected in the 2009 poll still would like to start their own businesses someday. In addition, poll results showed that an overwhelming majority of U.S. teens 84 percent of the kids surveyed said that entrepreneurial skills should be taught in school. In response to these findings, how do we address our young people s fears and encourage their much-needed participation in building businesses and contributing to the free-market economy? Junior Achievement 2

3 Helping students overcome the fear factor The 2010 Junior Achievement Teens and Entrepreneurship Survey reports that more than half of teen respondents 51 percent would like to own their own business someday. Though this is encouraging for the growth of the U.S. business sector, the survey also indicates that the recent global recession and the slow economic recovery have kids thinking about and fearful of starting their own enterprises. An overwhelming majority of those polled indicate they are discouraged by the apparent obstacles: 74 percent identified risk (39 percent) and the possibility of failure (35 percent) as deterrents, compared to 56 percent who cited lack of money to fund their business idea as a deterrent. Risk and failure, which are the heart of entrepreneurship, can provide valuable learning experiences. Programs that teach young adults to overcome and manage those fears such as Junior Achievement are the building blocks of confidence and economic success. A solid grasp of the realities and opportunities inherent in the 21st-century marketplace empowers knowledgeable decision-making and risk-taking. Would you like to start your own business someday? Which, if any, of the following would discourage you from starting your own business?* 60% Insufficient funding: 56% Yes: 51% No: 32% Not possible, given my career choice: 13% Don t know: 4% 50% 40% 30% 20% 10% 0 Too much risk: 39% Fear of failure: 35% No networks/contacts: 27% Insufficient education/skills: 18% Something else: 11% Don t know: 13% *Multiple answers; total does not equal 100 percent. Junior Achievement 3

4 Supplying the entrepreneurship skills kids need Teens realize the importance of entrepreneurial education. Even with the high number of teens fearing risk, 84 percent of those surveyed recognized that business and entrepreneurship skills including taking the initiative and assuming risks to create value for businesses should be taught in school, whether or not they personally ever own or participate in a business enterprise. Bringing the concepts of entrepreneurship and innovation into the classroom as early as possible and creating meaningful, hands-on experiences will give young people a head start on success. Junior Achievement has proven, age-appropriate programs ready to go to assist educators and motivate young learners. Taking the initiative and assuming risk to create value for the company or business, either as an owner of your own business or in your place of work, should be taught in school. Do you agree or disagree? Agree: 84% Disagree: 15% Don t know: 2% 0 20% 40% 60% 80% 100% Numbers may not total 100 percent, due to rounding. Junior Achievement 4

5 Learning how to think like a winner While many teens are put off by the elements of risk and failure involved in entrepreneurship, they recognize the key skills needed to succeed in today s marketplace: 34 percent of survey respondents chose creativity and imagination as they most essential skill, followed by 23 percent who named a solid work ethic as the most crucial factor in succeeding as an entrepreneur or businessperson. Harnessing this creativity and imagination into innovative ideas is what drives economic growth and job creation an urgent need and national priority. Young people don t have to wait until they ve entered the workplace to learn how to think like a business tycoon. Junior Achievement s programs incorporate critical core skills and soft skills, such as leadership, teamwork, innovative thinking and decision-making, to inspire young people to discover their potential and unleash their inner winner. Which one of the following, if any, is the most important factor or quality that determines success for an entrepreneur? 35% Creativity and imagination: 34% 30% 25% A solid work ethic: 23% 20% 15% 10% 5% 0 Early entrepreneurship education: 15% Initiative/being a self-starter: 14% A support network: 7% Resilience: 4% Don t know: 2% Other: 1% Junior Achievement 5

6 Taking control of their future More than half the teens who participated in the 2010 Junior Achievement Teens and Entrepreneurship Survey said the best reason to start a business was either to work for themselves (27 percent) or to take control of their destiny and set their career path (24 percent). This data is a key indicator when viewed in relation to the rest of the survey findings: Self-empowerment, achieved with the help of relevant education, can override a potential young entrepreneur s fear and uncertainty about competing in the marketplace. Junior Achievement provides programs that instill confidence and teach students to overcome their fears and own their economic success. JA helps young people connect with the relevancy of education and ignite their own particular spark of inspiration that will light their way to an amazing future. Which one of the following reasons best describes why you want to start your own business?* 30% 25% To work for yourself: 27% To control your destiny/career path: 24% 20% To raise money for good causes: 15% To earn more money: 14% 15% To become famous: 7% 10% To create jobs/spur economic growth: 6% To implement your great business idea: 3% 5% Most of your friends want to start businesses: 1% Other: 2% 0 * Numbers may not total 100 percent, due to rounding. Junior Achievement 6

7 Survey methodology This is the eighth year that Junior Achievement has conducted the Teens and Entrepreneurship survey, which attempts to gauge teens attitudes around business ownership. The survey was conducted by Opinion Research Corporation from August 26-31, 2010, and surveyed 1,000 U.S. teens ages by telephone. The survey s margin of error is +/- 3.2 percent. With so many teens fearing the risk and possible failure associated with starting a business. NOW is the time to teach them those essential skills to overcome that fear and become successful in the 21st-century global marketplace. Junior Achievement is the cornerstone that will empower students to overcome those fears so they step into the workplace armed with the necessary tools and confidence for success. Jack E. Kosakowski, president and CEO of Junior Achievement USA Junior Achievement 7

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